Question 1

SCENARIO 5-9
A major hotel chain keeps a record of the number of mishandled bags per 1,000 customers. In a
recent year, the hotel chain had 4.06 mishandled bags per 1,000 customers. Assume that the number
of mishandled bags has a Poisson distribution.
-Referring to Scenario 5-9, what is the probability that in the next 1,000 customers, the hotel
chain will have more than five but less than eight mishandled bags?

Accepted Answer

The answer of SCENARIO 5-9
A major hotel chain keeps a...

Question 2

SCENARIO 5-7
A consulting firm that surveyed consumers' holiday shopping behavior found that the percentage of
consumers from the U.S., Canada, and China who said that they planned to spend more on holiday
shopping were 40%, 34% and 73%, respectively. The survey also found that the percentage of
consumers from the U.S., Canada, and China who said that they were willing to share personal
information with retailers in order to receive personalized offers from retailers were 55%, 46% and
72%, respectively. Suppose you randomly select 5 consumers from each of the three countries.
-Referring to Scenario 5-7, the probability that more than 4 consumers from China are willing to
share personal information with retailers in order to receive personalized offers from retailers is
________.

Accepted Answer

The answer of SCENARIO 5-7
A consulting firm that surveyed consumers'...

Question 3

Suppose that the number of airplanes arriving at an airport per minute is a Poisson
process. The mean number of airplanes arriving per minute is 3. The probability that exactly 6
planes arrive in the next minute is 0.05041.

Accepted Answer

A) True 
 B)False

Question 4

If X has a binomial distribution with n = 4 and p = 0.3, then P(X > 1) = ________ .

Accepted Answer

The answer of If X has a binomial distribution with...

Question 5

SCENARIO 5-4
Two different designs on a new line of winter jackets for the coming winter are available for your
manufacturing plants. Your profit (in thousands of dollars) will depend on the taste of the consumers
when winter arrives. The probability of the three possible different tastes of the consumers and the
corresponding profits are presented in the following table. $$\begin{array} { | r | c | r | r | } 
\hline  { \text { Probability } } & \text { Taste } & \text { Design A } & \text { Design B } \
\hline 0.2 & \text { more conservative } & 180 & 520 \
\hline 0.5 & \text { no change } & 230 & 310 \
\hline 0.3 & \text { more liberal } & 350 & 270 \
\hline
\end{array}$$
-Referring to Scenario 5-4, what is the standard deviation of your profit when Design B is chosen?

Accepted Answer

The answer of SCENARIO 5-4
Two different designs on a new...

Question 6

A professor receives, on average, 24.7 e-mails from students the day before the midterm exam. To compute the probability of receiving at least 10 e-mails on such a day, he will use what type
Of probability distribution?

Accepted Answer

A)  binomial distribution. 
B)  Poisson distribution. 
C)  hypergeometric distribution. 
D)  none of the above.

Question 7

On the average, 1.8 customers per minute arrive at any one of the checkout counters of a grocery store. What type of probability distribution can be used to find out the probability that there will
Be no customer arriving at a checkout counter?

Accepted Answer

A)  binomial distribution. 
B)  Poisson distribution. 
C)  hypergeometric distribution. 
D)  none of the above.

Question 8

Current estimates suggest that 75% of the home-based computers in a foreign country have access
to on-line services. Suppose 20 people with home-based computers were randomly and
independently sampled. Find the probability that fewer than 10 of those sampled currently have
access to on-line services.

Accepted Answer

The answer of Current estimates suggest that 75% of the...

Question 9

The connotation "expected value" or "expected gain" from playing roulette at a casino means

Accepted Answer

A)  the amount you expect to "gain" on a single play. 
B)  the amount you expect to "gain" in the long run over many plays. 
C)  the amount you need to "break even" over many plays. 
D)  the amount you should expect to gain if you are lucky.

Question 10

SCENARIO 5-7
A consulting firm that surveyed consumers' holiday shopping behavior found that the percentage of
consumers from the U.S., Canada, and China who said that they planned to spend more on holiday
shopping were 40%, 34% and 73%, respectively. The survey also found that the percentage of
consumers from the U.S., Canada, and China who said that they were willing to share personal
information with retailers in order to receive personalized offers from retailers were 55%, 46% and
72%, respectively. Suppose you randomly select 5 consumers from each of the three countries.
-Referring to Scenario 5-7, the probability that none of the 5 consumers from China are willing
to share personal information with retailers in order to receive personalized offers from retailers is
________.

Accepted Answer

The answer of SCENARIO 5-7
A consulting firm that surveyed consumers'...

Question 11

Whenever π = 0.5, the binomial distribution will

Accepted Answer

A)  always be symmetric. 
B)  be symmetric only if n is large. 
C)  be right-skewed. 
D)  be left-skewed.

Question 12

A national trend predicts that women will account for half of all business travelers in the next 3
years. To attract these women business travelers, hotels are providing more amenities that women
particularly like. A recent survey of American hotels found that 70% offer hairdryers in the
bathrooms. Consider a random and independent sample of 20 hotels. Find the probability all of
the hotels in the sample offered hairdryers in the bathrooms.

Accepted Answer

The answer of A national trend predicts that women will...

Question 13

A national trend predicts that women will account for half of all business travelers in the next 3
years. To attract these women business travelers, hotels are providing more amenities that women
particularly like. A recent survey of American hotels found that 70% offer hairdryers in the
bathrooms. Consider a random and independent sample of 20 hotels. Find the probability that
more than 7 but less than 13 of the hotels in the sample offered hairdryers in the bathrooms.

Accepted Answer

The answer of A national trend predicts that women will...

Question 14

SCENARIO 5-10
Subscribers to Investment Advice White Letters perform security transactions at the rate of five trades
per month. Assume that one of the subscribers performs transactions at this rate and the probability
of a transaction for any two months is the same and the number of transactions in one month is
independent of the number of transactions in another month.
-Referring to Scenario 5-10, what is probability that no security transaction will be conducted in
one month?

Accepted Answer

The answer of SCENARIO 5-10
Subscribers to Investment Advice White Letters...

Question 15

The largest value that a Poisson random variable X can have is n.

Accepted Answer

A) True 
 B)False

Question 16

SCENARIO 5-10
Subscribers to Investment Advice White Letters perform security transactions at the rate of five trades
per month. Assume that one of the subscribers performs transactions at this rate and the probability
of a transaction for any two months is the same and the number of transactions in one month is
independent of the number of transactions in another month.
-Referring to Scenario 5-10, what is probability that exactly ten security transactions will be
conducted in one month?

Accepted Answer

The answer of SCENARIO 5-10
Subscribers to Investment Advice White Letters...

Question 17

SCENARIO 5-3
There are two houses with almost identical characteristics available for investment in two different
neighborhoods with drastically different demographic composition. The anticipated gain in value
when the houses are sold in 10 years has the following probability distribution: 
-Referring to Scenario 5-3, what is the expected value gain for the house in neighborhood A?

Accepted Answer

The answer of SCENARIO 5-3
There are two houses with almost...

Question 18

SCENARIO 5-1
The following table contains the probability distribution for X = the number of retransmissions
necessary to successfully transmit a 1024K data package through a network. $$\begin{array} { c | c | c | c | c | } 
X & 0 & 1 & 2 & 3 \
\hline P ( X ) & 0.35 & 0.35 & 0.25 & 0.05
\end{array}$$
-Referring to Scenario 5-1, the variance for the number of retransmissions is ________.

Accepted Answer

The answer of SCENARIO 5-1
The following table contains the probability...

Question 19

SCENARIO 5-7
A consulting firm that surveyed consumers' holiday shopping behavior found that the percentage of
consumers from the U.S., Canada, and China who said that they planned to spend more on holiday
shopping were 40%, 34% and 73%, respectively. The survey also found that the percentage of
consumers from the U.S., Canada, and China who said that they were willing to share personal
information with retailers in order to receive personalized offers from retailers were 55%, 46% and
72%, respectively. Suppose you randomly select 5 consumers from each of the three countries.
-Referring to Scenario 5-7, the probability that less than 4 consumers from the U.S. plan to
spend more on holiday shopping is ________.

Accepted Answer

The answer of SCENARIO 5-7
A consulting firm that surveyed consumers'...

Question 20

SCENARIO 5-7
A consulting firm that surveyed consumers' holiday shopping behavior found that the percentage of
consumers from the U.S., Canada, and China who said that they planned to spend more on holiday
shopping were 40%, 34% and 73%, respectively. The survey also found that the percentage of
consumers from the U.S., Canada, and China who said that they were willing to share personal
information with retailers in order to receive personalized offers from retailers were 55%, 46% and
72%, respectively. Suppose you randomly select 5 consumers from each of the three countries.
-Referring to Scenario 5-7, the probability that less than 4 consumers from Canada are willing to
share personal information with retailers in order to receive personalized offers from retailers is
________.

Accepted Answer

The answer of SCENARIO 5-7
A consulting firm that surveyed consumers'...

Exam 5: Discrete Probability Distributions

Suppose that the number of airplanes arriving at an airport per minute is a Poisson process. The mean number of airplanes arriving per minute is 3. The probability that exactly 6 planes arrive in the next minute is 0.05041.

If X has a binomial distribution with n = 4 and p = 0.3, then P(X > 1) = ________ .

A professor receives, on average, 24.7 e-mails from students the day before the midterm exam. To compute the probability of receiving at least 10 e-mails on such a day, he will use what type Of probability distribution?

On the average, 1.8 customers per minute arrive at any one of the checkout counters of a grocery store. What type of probability distribution can be used to find out the probability that there will Be no customer arriving at a checkout counter?

The connotation "expected value" or "expected gain" from playing roulette at a casino means

Whenever π = 0.5, the binomial distribution will

The largest value that a Poisson random variable X can have is n.